Argentina’s industrial output decreased from -0.7% to -2.9% year-over-year in October. This dip contrasts with previous months and indicates a decline in industrial performance.<\/p>\n
Additionally, global markets have seen various movements. For example, the PBOC set the USD\/CNY reference rate at 7.0753, slightly lower than the previous rate of 7.0773.<\/p>\n
In currency markets, NZD\/USD remains stable below 0.5800, close to a one-month high. Meanwhile, worries about inflation data in China affect trading sentiments.<\/p>\n
The gold price saw a drop, trading near $4,200 with expectations of tighter monetary policy by the Federal Open Market Committee. This decline happens alongside predictions of a hawkish approach from the Fed.<\/p>\n
Ethereum experienced a 6% increase in value as whale activity intensified prior to the Fed meeting. The crypto market, including Bitcoin at over $90,000, faces mixed signals despite risk-off sentiments.<\/p>\n
Looking into 2026, the economic outlook remains uncertain amidst financial system risks and trade issues. Nevertheless, global and European economies showed resilience against the 2025 slowdown.<\/p>\n
FXStreet outlines various recommendations for currency trading in 2025 but stresses doing thorough research due to inherent risks. It underscores that any investment carries possible total loss and emotional distress.<\/p>\n
With the Federal Reserve’s decision just hours away on December 10th, the market is fully braced for a “hawkish cut.” We see the dollar strengthening against the Euro and Pound as a 25 basis point rate reduction is already priced in. The real focus is on the Fed’s tone regarding future policy in 2026.<\/p>\n
This setup suggests a sharp increase in short-term volatility, which we are seeing reflected in elevated pricing for options expiring this week. A long straddle on the SPY ETF could be a prudent play, positioned to profit from a significant market move in either direction post-announcement. Historically, implied volatility, as measured by the VIX, often gets “crushed” after such events, making selling premium a very risky proposition right now.<\/p>\n
The decline in gold towards $4,200 is a direct response to the robust US jobs report from last week, which showed a stronger-than-expected 210,000 jobs added in November. This data supports the Fed’s potential for a hawkish stance, pushing up real yields and making non-yielding gold less attractive. Derivative traders might consider buying puts on gold futures or related ETFs to speculate on further downside.<\/p>\n
We are also watching the periphery for signs of stress, as Argentina’s industrial output just contracted by a sharp 2.9% year-over-year. This echoes the struggles we saw in their economy back in late 2023 and adds to concerns about emerging markets if the Fed remains restrictive. The upcoming Chinese inflation data will be critical for anyone trading commodity-linked currencies like the Australian and New Zealand dollars.<\/p>\n
Given the dollar’s recent climb, with USD\/JPY pushing 157.00, call options on the UUP (Invesco DB US Dollar Index Bullish Fund) offer a direct way to position for continued dollar strength. We are reminded of the 2019 easing cycle where the Fed cut rates but signaled a high bar for further cuts, causing a similar risk-off rally in the dollar. Hedging any non-dollar exposure appears to be the most critical action in the coming days.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Argentina\u2019s industrial output shrank; gold dipped; Ethereum surged; global markets fluctuate amid inflation and Fed concerns.<\/p>\n","protected":false},"author":62,"featured_media":16960,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-36427","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/36427","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=36427"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/36427\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/16960"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=36427"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=36427"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=36427"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}